BRE-X MINERALS (Nasdaq: BXMNF) opened down $2 9/32 at $1/32 this morning
after being halted for the last two days on the Nasdaq for news dissemination.
The Canadian-based natural resources concern announced Sunday that a consultant
it had hired to examine the Busang gold deposit in Indonesia had confirmed
there was no gold. Strathcona Mineral Services Ltd. also said that it found
evidence of tampering with core samples over a period of time that leaves
little doubt that there was a deliberate attempt at deception at some point.
Strathcona additionally determined that there was no gold deposit in Busang,
contrary to the original claim that there were 71 million ounces of gold
on the site.

Bre-X Minerals vaulted to fame in 1993 after it claimed to have discovered
the largest gold deposit ever deep in the jungles of Borneo. The stock exploded
in early 1996 when natural resources giant FREEPORT-MCMORAN COPPER &
GOLD(NYSE: FCX) announced a joint venture with the company, validating
Bre-X's claims of massive amounts of gold. Although Freeport's decision in
mid-February not to give Bre-X an up-front cash payment dampened shareholder
enthusiasm, the fact that Freeport was fronting $400 million to develop the
site in return for a 15% take gave many investors a great deal of comfort.
With Freeport already working a site in the eastern Indonesian province of
Irian Jaya called Grasberg, the idea of a gold deposit in Busang was not
outrageous at all.

Bre-X began unraveling on March 19th when the company's top geologist allegedly
jumped to his death from a helicopter while en route to a meeting with Freeport
officials. The suicide note left by Michael de Guzman caused shareholders
to panic. A week later Freeport determined that its preliminary tests found
"insignificant" amounts of gold at Busang, causing the Bre-X share price
to collapse. Although initially a variety of conspiracy theories began to
make the rounds on the Internet, too many investors recognized a classic
Canadian natural resources fraud in the making. Reminiscent of ARAKIS
ENERGY'S (Nasdaq: AKSEF) collapse after talks of financing by a Saudi
prince of dubious heritage dried up in 1996, Bre-X has now returned to the
pennies from whence it came. For its part, Freeport-McMoran Copper &
Gold has fallen from its high of $35 after the deal was announced to $31
today.

UPS

Non-standard used-car lender FIRST MERCHANTS ACCEPTANCE (Nasdaq: FMAC)
gained $1 1/8 to $5 1/2 after announcing this morning that Greenwich Capital
Markets Inc. will inject $50 million into the beaten-down finance company
via the purchase of a pool of loans, among other commitments Greenwich made
to First Merchants.

DISCREET LOGIC(Nasdaq: DSLGF) moved up $1 3/4 to $12 3/8 after the
video editing systems maker announced Q3 earnings per share (EPS) of $0.11
on revenues of $27 million, up 84% year-over-year.

Respiratory pharmaceuticals company DURA PHARMACEUTICALS (Nasdaq: DURA) added $3 1/4 to $37 3/4 after announcing the purchase of two intranasal
steroid products from Roche Group for $70 million plus contingent payments.
Dura said the products will immediately add to earnings.

ELECTRONIC ARTS(Nasdaq: ERTS) gained $1 1/2 to $30 5/8 after the
video game company reported a 36% increase in Q4 EPS of $0.19 on revenues
of $144 million. Alex. Brown and Cowen & Co. both raised their ratings
on the company to "strong buy" from "buy."

British industrial explosives and chemical company IMPERIAL CHEMICAL
(NYSE: ICI) rose $3 to $50 1/4 after announcing an agreement to purchase
the specialty chemical unit of UNILEVER(NYSE: EL) for $8 billion
in cash.

State-run CORPORACION BANCARIA DE ESPANA(NYSE: AGR) gained $1 3/8
to $24 3/8 after the Spanish bank announced that it will reduce its workforce
by 2,100 over the next three years.

Broadcaster AMERICAN RADIO SYSTEMS(NYSE: AFM) was amplified $1 3/4
to $33 3/4 after reporting a 130% increase in Q1 revenues and a 144% increase
in broadcast cash flow.

DOWNS

Homebuilder D. R. HORTON INC.(NYSE: DHI) was bulldozed for a $1 7/8
loss to $9 5/8 after Merrill Lynch cut its near-term rating on the company
to "accumulate" from "buy."

FLUOR CORP.(NYSE: FLR) lost $3 1/4 to $46 3/4 on pre-announcing a
fourth quarter operating loss of approximately $120 million. The company
had already announced a cost reduction program earlier this year and said
today that it will readjust its earnings growth target to 15% from 20%.

Contract research organization PREMIER RESEARCH WORLDWIDE (Nasdaq: PRWW) lost $1 1/4 to $7 3/8 after announcing that it expects its June quarter
revenues to decline substantially year-over-year and that it expects to miss
earnings estimates for the quarter and for the year.

GILEAD SCIENCES(Nasdaq: GILD) declined $2 to $26 after the company's
cidofovir gel for the treatment of herpes failed to receive marketing approval
from the FDA.

Correction: In Monday's Lunchtime News Robertson Stephens Inc.
was reported to have recommended PLEXUS INC. (Nasdaq: PLXS). Stephens
Inc. was in fact the company that rated Plexus a "strong buy." We apologize
for the error.

ATCT down $1/4 at $4 1/2
AOL up $1 1/8 at $50 1/8
CHV up $1/4 at $69 3/4
COMS up $1 3/8 at $37 1/8
DJT down $1/4 at $10
GM down $3/4 at $57 7/8
IOM up $1 1/8 at $18 5/8
KLAC up $1/4 at $50 1/4
LU up $5/8 at $62 5/8
MMM down $1/8 at $90 1/8
T down $3/8 at $33